We really don't own the software we pay for. We are just paying a fee for using it.

This isn't the same thing as selling a photo. It is more like licenseing a photo for limited use, which happens very often. You could buy a print, or buy the photo entirely, or simply license a print for limited use.

You probably could buy Adobe Photoshop outright, if you offered Adobe around $400 million for it. Give or take. You just can't own their intellectual property for $799. You can only lease it for that amount.

The problem here is that the seller has too much power over the buyer... if there is no competition, or if the buyer refuses to consider any other options. If enough people simply said "no" to software subscription plans, the idea would simply disappear. Because they need a certain volume to make it profitable at $20 per month.

Without millions of users, the monthly fee could be $400 a month and only the users with the most desperate need for the software would pay for it. And then Adobe ends with even less revenue than they had at the lower price.

So the sellers have to find the right balance. They have to ask themselves.... "how much can we charge these jerks before they walk?"

Personally, I think $240 a year is too much. But that's just my view. Others may disagree. Some might be willing to pay that much, and some might be willing to pay significantly more.

Which is why I said Adobe is taking a risk.

Of course.... even if they have blundered they can always correct the price if they set it too high, or raise the price again if they set it too low. It isn't the end of the world for them. The market will always find the right price for anything.

Remember "New Coke?"

In 1985 Coca-Cola decided to change the formula and branding of their flagship product based on blind taste testing market research. The customer backlash was huge, and within three short months they were forced to return to selling "Coca-Cola Classic" and New Coke became a footnote in their history. And Coca-Cola continued in their position of market leadership ever since.

Coca-Cola demonstrated how even the worst marketing blunder can be corrected if you act quickly enough.